NitroMed spurns Archemix, turns to Deerfield

Private equity group Deerfield Capital has agreed to pay $36 million in an all-cash deal for struggling biotech NitroMed. FierceBiotech readers will recall that in November NitroMed agreed to a merger with Archemix; that deal has been terminated, and NitroMed will fork over $1.5 million in fees to Archemix. The drug developer is also abandoning a purchase and sale agreement with JHP Pharmaceuticals, earning JHP about $900,000 in termination fees.

NitroMed entered into the merger agreement with Deerfield after its board of directors decided that a merger with Deerfield was superior to the terms of both the JHP purchase and sale agreement and the Archemix merger agreement. Deerfield offered $23 million for NitroMed in December and proceeded to boost its offer twice more before the company agreed to the deal. As part of the agreement, NitroMed will be allowed to solicit, negotiate and evaluate competing acquisition proposals during a post-signing period ending on February 26, 2009, though there's no guarantee the company will find a higher offer. The transaction is expected to be completed by April 2009.

- read NitroMed's release
- heres the article for more

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